May 29, 2009

Hundreds of Westchester families facing foreclosure continue to turn to county government-funded counseling programs for help – and many are finding it.

The latest statistics compiled by the county show that since Jan. 1, the three HUD-certified housing counseling agencies with whom the county works have collectively helped negotiate 52 loan modifications, 5 loan refinances and 19  forbearance agreements. An additional 394 cases are still pending. 

The total since the program began late last year is: 224 loan modifications, 6 refinances and 19 forebearance agreements.  

“Not all foreclosure stories have happy endings,” said County Executive Andy Spano. “But thanks to the work of our non-profit partners, there are some real success stories, In addition, hundreds of others are getting no-cost impartial advice on how to avoid problems.”

Spano issued a reminder to residents who are threatened with possible foreclosure to call one of the HUD-certified agencies for free help. “Your first call should not be to one of those businesses that claim in radio, TV or email that they can help,” he said. “Often these commercial companies take advantage of consumers by charging up-front fees and misrepresenting what they can do.” 

The county government effort comes with support on various department levels, including $150,000 in direct assistance from the Board of Legislators.
Board Chairman Bill Ryan said the investment is money well spent. “While the county is not in the bailout business, we have provided funding for professional counseling services to help homeowners work with lenders to resolve their mortgage concerns,” he said. “This is a tough economy and many Westchester homeowners still face the terrible prospect of losing their homes. I urge residents to make use of this invaluable service.” 

The county provides other funding to the housing counseling agencies through its eviction prevention programs and federal Community Development Block Grant and Emergency Shelter Grant programs.

After a 6-month lull in foreclosures in Westchester County (because of a new state law requiring additional notification, and a voluntary moratorium on the part of some banks in Westchester), foreclosures are once again on the rise. Foreclosures in the first four months of 2009 totaled 293, just seven shy of the number of foreclosures for all of 2005. With 266 mortgage default filings, April was the second highest month for such filings since 2005. Mortgage defaults in the first four months of 2009 totaled 758. If these numbers continue, 2009 will have a higher number of default filings than 2008, which had set a record with 2,208. 

Spano urged people concerned about losing their homes to call one of these agencies now – not to wait until they miss a mortgage payment.

“These HUD-certified agencies provide services to prevent foreclosures,” he said. “They are most successful when home owners come to them early on. Their counselors have extensive training and experience in negotiating with banks on behalf of homeowners. They know the local lenders, they know what types of loan modifications are available, they know what you can afford to pay, and they look out for you.”

The three HUD-certified housing counseling agencies with whom the county is working are:
Housing Action Council
55 S Broadway # 2
Tarrytown, NY 10591
332-4144
http://www.housingactioncouncil.org

Human Development Services of Westchester, Inc.
930 Mamaroneck Avenue
Mamaroneck, NY 10543
939-2005 x1103
www.HDSW.org

Westchester Residential Opportunities Inc.
470 Mamaroneck Avenue, Suite 410
White Plains, NY 10605
428-4507
www.wroinc.org

Advice from the county’s Department of Consumer Protection if you are fearful of foreclosure:

• Don't ignore the problem. The further behind you become, the harder it will be to reinstate your loan and the more likely that you will lose your house.
• Contact your lender as soon as you realize that you have a problem. Lenders do not want your house. They have options to help borrowers through difficult financial times.  If you don't feel comfortable talking with your lender, you should immediately contact a HUD-certified housing counseling agency and arrange an appointment with a counselor.
• Open and respond to all mail from your lender. The first notices you receive will offer good information about foreclosure prevention options that can help you weather financial problems.  Later mail may include important notice of pending legal action.  Your failure to open the mail will not be an excuse in foreclosure court.
• Know your mortgage rights. Find your loan documents and read them so you know what your lender may do if you can't make your payments.  Learn about the foreclosure laws and timeframes in your state (as every state is different) by contacting the State Government Housing Office.
• Understand foreclosure prevention options. For information about foreclosure prevention go to  http://www.westchestergov.com/consumer_howtoavoidforeclosure.htm
• Contact a HUD-certified housing counselor. Avoid foreclosure prevention companies. Many for-profit companies will contact you promising to negotiate with your lender. Even if  these are legitimate businesses, they will charge you a hefty fee for services that the HUD-certified counselor will provide for free.
• Don't lose your house to foreclosure recovery scams. If any firm claims it can stop your foreclosure immediately if you sign a document appointing them to act on your behalf, you may well be signing over the title to your property and becoming a renter in your own home! Never sign a legal document without reading and understanding all the terms and getting professional advice from an attorney, a trusted real estate professional, or a HUD-approved counselor.
  
  • Get promises in writing and keep copies of all contracts you sign.
  • Make your mortgage payments directly to your lender or the mortgage servicer.  Do not trust anyone else to make mortgage payments for you.
  • Avoid paying up-front fees. Under state law, a loan modification company or “distressed property consultant” cannot charge or accept fees without first completing all services called for in the contract.
  •  Be very careful about signing over your deed.  Foreclosure scams often require you to sign over ownership of your home to a con artist or another third party.  By signing over your deed, you lose your rights to your home and any equity built up in the home.